India Bans Forced Labour Imports Amid US Tariff Threats

The Government of India amended its Foreign Trade Policy 2023 to prohibit the import of goods produced, wholly or in part, through forced labour. Notified on July 13, 2026, the measure takes effect 30 days after publication. The policy adopts the International Labour Organization's 1930 Forced Labour Convention definition and empowers the Directorate General of Foreign Trade to investigate allegations and recommend specific product bans to the central government.

This policy shift follows a Section 301 investigation by the United States Trade Representative into approximately 60 economies, including India and Pakistan, regarding forced labour and excess industrial capacity. The United States proposed new trade duties of up to 12.5% for countries failing to prohibit forced-labour imports, a significant increase over the 10% tariff currently facing many Indian exports.

Sri Lanka also prohibited forced-labour imports via an order from President Anura Kumara Dissanayake to avoid these proposed U.S. tariffs and strengthen trade compliance. The United States Trade Representative characterized the import of such goods as an unfair advantage that disturbs the level playing field for the U.S. economy.